A switch in the food chain that fosters a hopeful economic future

Each year, 1.3 billion¹ tons of food intended for human consumption go to waste, representing a significant loss across every stage of the food chain—from production and manufacturing to distribution, retail, and eventually the consumer’s home.

Although a majority of food waste is said to occur at the consumer level, every stakeholder in the system must play a role in addressing the issue.

Food waste not only squanders a third of the world’s agricultural land but also depletes 250 cubic kilometers of water²—nearly three times the volume of Lake Geneva—placing vital resources under relentless and unnecessary strain.

Food waste is estimated to contribute to 10% of global greenhouse gas emissions and if it were a country, it would rank as the third-largest emitter of CO₂, behind China and the United States². Tackling food waste across its various stages has become a major priority—not only for environmental preservation, as reducing food waste is among the top solutions to combat climate change, but also for economic reasons. Each year, over a trillion dollars³ are lost due to food waste, at the expense of companies and investors. A staggering cost that primarily stems from products which, in many cases, never reach the supermarket aisles.

According to Marie Mourad, a French sociologist and zero food waste specialist, the issue is deeply systemic and tied to dynamics at each stage of the supply chain. “We are in a system which relies on large-scale production and long supply chains with numerous intermediaries, resulting in waste at every stage,” she explains. “A lot of waste occurs even before products reach retailers, who set very strict aesthetic standards in their contracts with suppliers.” As a result, perfectly edible fruits and vegetables that don’t match a certain shape or color are often discarded. In most countries, effective legislation to combat food waste has yet to be implemented.  

In France, one of the few European countries to adopt food waste regulations—along with Italy, Spain, and Denmark—a 2016 law prohibits supermarkets from throwing away food and makes it mandatory to donate products that are considered unsellable to charities or food recovery organizations.

Jean Moreau, founder and CEO of Phenix, took proactive steps even before the law’s implementation. In 2014, he established Phenix, a company dedicated to mitigating food waste while providing financial benefits to industrial and retail clients – a way to foster an economically viable solution.

By connecting manufacturers and retailers with charities and private individuals, Phenix ensures that surplus food, regardless of its appearance or proximity to expiry dates, is redirected to those who need it most, rather than ending up in landfills or being wasted.

 “Our business model is to transform a cost center—waste—into a profit center” explains Jean Moreau. “We achieve this through three key levers: first, we help clients lower their waste management costs. Second, we create additional revenue for clients by selling discounted products through our B2C mobile app. And third, by donating food to charities, clients become eligible for tax credits.”

With 6 million downloads of its app already, Phenix has developed a powerful tool to tackle food waste in the industrial and retail segments while enabling companies to profit from its reduction. However, scaling these solutions to create a lasting impact requires mentorship and financial support, and many food companies still send unwanted products to landfills.

BNP Paribas Asset Management has been actively addressing the issue in partnership with the Solar Impulse Foundation (SIF). Founded by Bertrand Piccard, a Swiss explorer and environmental expert, “SIF has committed to identifying 1,600 innovative solutions that are both economically viable and environmentally protective, seeking to reconcile ecology with the economy. Phenix is one such solution”.

As a pioneer in energy transition, BNP Paribas became a partner of the Solar Impulse Foundation (SIF) in 2017. At a time when environmental issues are exerting increasing pressure on our economy, it was a logical next step to deepen this collaboration by launching a dedicated fund to support sustainable startups.

“It was a natural match,” says Laura Wirsztel, Investment Director at BNP Paribas Asset Management – Ecological Transition team. “The Solar Impulse Foundation has great expertise in combating climate change, and BNP Paribas has been at the forefront of helping the energy transition. Joining forces allows us to help these companies grow more efficiently and scale their solutions faster.”

“We’re agnostic in terms of sectors we invest in. Whether it is food waste with Phenix, or energy, mobility, in addition to biodiversity, we are looking for startups that can have a real environmental impact if they develop at scale, and that will also have the potential to generate financial returns for our investors.”

In addition to financial backing, the investment team can offer beneficiary companies’ expertise, networking opportunities, and strategic advice to accelerate their growth. This critical support, much like a ripple effect, fosters a virtuous shift toward a more sustainable food chain and beyond.

[1] https://www.fao.org/4/mb060e/mb060e.pdf

[2] Etude FAO 2013

[3] https://wedocs.unep.org/handle/20.500.11822/45230